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NZ central bank cuts cash rate by 25 bps to 2.25%

BY Reuters | ECONOMIC | 11/25/25 08:07 PM EST

By Lucy Craymer

AUCKLAND, Nov 26 (Reuters) - New Zealand's central bank cut its benchmark official cash rate by 25 basis points to 2.25% on Wednesday, its lowest level since mid-2022, as policymakers extended their efforts to revive a struggling economy and mitigate global headwinds.

The decision matched a Reuters poll in which all but four of the 36 economists surveyed forecast the Reserve Bank of New Zealand would cut the cash rate by a quarter point.

The central bank, which surprised markets by slashing rates by a bigger-than-expected 50 basis points in October, has delivered 325 basis points worth of easing since August 2024 to shore up an economy that has contracted in three of the last five quarters. (Lucy Craymer in Auckland Editing by Shri Navaratnam)

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Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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